General reason: The pair is witnessing a broad-based bounce and pushing GBP/USD towards the upside. At press time, the currency pair is trading just above its 50-hour Simple Moving Average (SMA). The hourly chart Relative Strength Index shows a double top breakdown bullish pattern. As such, the pair looks set to challenge an eight-day-long ascending trendline’s support located near 1.3612 at press time. The pair is trading above the support line. The retail sales released by the Office for National Statistics (ONS) measures the total receipts of retail stores.
Monthly percent changes reflect the rate of changes in such sales. Changes in Retail Sales are widely followed as an indicator of consumer spending. Generally speaking, a high reading is seen as positive, or bullish for the GBP. This time the pair tested at the fresh cycle highs on the positive Brexit comments from grove. The bulls are finding pull at a certain point but still they are trading at the front foot and taking the market towards higher highs. GBP/USD dips below key average eyes ascending trendline support. The daily chart indicator shows a bullish pattern.
Technical analysis: From the technical way we can conclude that the market is rising will the strong force. The bulls are leading the market and positive volatility has been created in market. The bulls are showing their aggression towards the positive channels. The buyers can make their sentiments towards the buy in the market. On the daily chart the market is forming an upward rise and the market is ready to rise and creating bullish signals in the market. However, the market is planning to follow the trend in the market. the planned rollout of effective vaccines would be expected to have a positive impact on activity and inflation and is seen to reduce downside risks which were ascertained from today’s stance at the BoE.
Moreover, the weakness in the US dollar is a major contributor to cable’s strength. The pair is seeming to be rise and it gives strength to the buyers. So, buyers can plan their trades with the GBP/USD forecast and sit on the buy-side. On the daily chart also, the pair seems to be rising to the level 1.3538 and can be more rise expected. The RSI is also rising above the 50 level and creating bullishness and the MACD is also above zero line creating buy signals.The support of the market is 1.3427followed by 1.3320 and resistance is 1.3720 followed by 1.3807
Trade idea: we can conclude that the buyers can go for buy at the level 1.3542 and target is 1.3793 -1.3929 and stop loss will be 1.3325.
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